NOTE 8 – SEGMENTS

The Company and its subsidiaries are principally engaged in the international operation of membership shopping in 39 warehouse clubs located in 13 countries/territories that are located in Central America, the Caribbean and Colombia. In addition, the Company operates distribution centers and corporate offices in the United States. The Company has aggregated its warehouse clubs, distribution centers and corporate offices into reportable segments. The Company’s reportable segments are based on management’s organization of these locations into operating segments by general geographic location, used by management and the Company's chief operating decision maker in setting up management lines of responsibility, providing support services, and making operational decisions and assessments of financial performance. Segment amounts are presented after converting to U.S. dollars and consolidating eliminations. Certain revenues, operating costs and inter-company charges included in the United States segment are not allocated to the segments within this presentation, as it is impractical to do so, and they appear as reconciling items to reflect the amount eliminated on consolidation of intersegment transactions.

The following tables summarize by segment certain revenues, operating costs and balance sheet items (in thousands):



	United States Operations		Central American Operations		Caribbean Operations		Colombia Operations		Reconciling Items(1)		Total
Three Months Ended February 28, 2017
Revenue from external customers	$	8,171	$	473,994	$	219,515	$	91,616	$	—	$	793,296
Intersegment revenues		270,369		—		1,175		12		(271,556)		—
Depreciation and amortization		1,475		5,140		2,531		2,299		—		11,445
Operating income		841		38,371		13,958		1,142		(14,910)		39,402
Net income		2,652		30,545		8,568		364		(14,910)		27,219
Capital expenditures, net		49,792		15,461		2,101		1,045		—		68,399

Six Months Ended February 28, 2017
Revenue from external customers	$	18,926	$	912,228	$	426,537	$	175,177	$	—	$	1,532,868
Intersegment revenues		588,031		—		2,873		22		(590,926)		—
Depreciation and amortization		3,049		10,004		4,989		4,520		—		22,562
Operating income		7,088		72,708		26,484		2,260		(30,759)		77,781
Net income		4,960		57,605		19,741		541		(30,759)		52,088
Capital expenditures, net		52,129		26,217		6,539		1,518		—		86,403
Long-lived assets (other than deferred tax assets)		68,872		288,855		109,353		134,833		—		601,913
Goodwill		—		31,153		4,539		—		—		35,692
Total assets		126,494		538,628		300,983		190,847		—		1,156,952

Three Months Ended February 29, 2016
Revenue from external customers	$	6,567	$	474,924	$	230,035	$	66,405	$	—	$	777,931
Intersegment revenues		245,041		—		1,326		—		(246,367)		—
Depreciation and amortization		1,031		4,570		2,441		1,487		—		9,529
Operating income/(loss)		5,183		38,980		14,658		(1,698)		(17,987)		39,136
Net income/(loss)		1,591		31,433		13,100		(2,195)		(17,987)		25,942
Capital expenditures, net		2,418		4,497		1,768		5,721		—		14,404

Six Months Ended February 29, 2016
Revenue from external customers	$	14,816	$	898,484	$	441,698	$	134,864	$	—	$	1,489,862
Intersegment revenues		559,662		—		2,764		—		(562,426)		—
Depreciation and amortization		1,961		8,811		4,849		3,111		—		18,732
Operating income		10,662		72,689		28,248		(2,032)		(33,136)		76,431
Net income		3,318		57,635		24,903		(3,106)		(33,136)		49,614
Capital expenditures, net		3,327		15,678		5,750		8,996		—		33,751
Long-lived assets (other than deferred tax assets)		16,776		265,262		107,945		104,860		—		494,843
Goodwill		—		31,090		4,611		—		—		35,701
Total assets		72,661		505,567		280,293		150,322		—		1,008,843

As of August 31, 2016
Long-lived assets (other than deferred tax assets)	$	19,222	$	271,039	$	108,426	$	137,599	$	—	$	536,286
Goodwill		—		31,091		4,546		—		—		35,637
Total assets		100,744		515,478		287,088		193,425		—		1,096,735

⁽¹⁾

The reconciling items reflect the amount eliminated on consolidation of intersegment transactions.